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The food industry is a necessary part of any society’s livelihood. Even in the most tragic circumstances, such as the global pandemic that shook the world to its roots, the food industry has stood its ground.
How To Market Food Products Online
Sellers have had to take advantage of the digital world and effectively solve the purchase and delivery challenge virtually. Looking at the statistics, the online grocery market in India was estimated to be valued at USD 2.9 billion in 2020 and is expected to grow at a CAGR of 37.1% between 2021 and 2028.
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The market has gained strong momentum in recent months due to changing consumer lifestyles, increasing urbanization and a tech-savvy generation that prefers to buy products online.
In Assam too, it was observed that with increasing disposable income and more hectic lifestyles, people are increasingly looking for customizable and convenient online platforms for grocery and meat shopping. The preference for online food delivery has become more visible since the COVID-19 epidemic, especially due to social distancing, which consumers consider not only convenient but also a safer option.
Many sellers are used to the new norm, although some more than others. Dibrugarh-based Diganta Saikia, founder of fast-growing meat and fish startup Manxho, started his protein venture journey in June 2020 during the coronavirus shutdown.
“We already had a pig farm ready, and with the ban on moving, selling and slaughtering pigs/pork, we decided to sell fresh pork with a home delivery service (according to the law during the closing time). The management gave us permission to sell pork door to door because chicken meat was sold that way, so we became the first company to sell pork and smoked pork online through a home delivery service in Dibrugarh district. We started from Dibrugarh City, now we are serving customers in Khowang, Moran, Tinsukia, Duliajan, Digboi, Guwahati and Namsai (Arunachal Pradesh), he said.
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Manxho is also the first in Upper Assam to sell packaged smoked pork online and at FSSAI licensed outlets.
Saikia’s story is similar to that of many other food vendors like Freshdon’s Sahil Huda and Foodsbaskets founder Pranab Barman. The barista’s business started by recognizing a need. He found that the availability of hygienically processed custom cuts of meat, exotic fruits and vegetables in Guwahati was very limited.
“There were few startups like FreshToHome and Licious that launched their services in the best cities with similar products. Although a developing metropolitan area like Guwahati does not yet have a very high uptake of online grocery shopping, the customer base is growing significantly and we are targeting them. We are looking for customers who are looking for fast, practical and high-quality products. Covid-19 came at a time when we were just starting the groundwork and opened up even more opportunities for the grocery online business,” says Barman.
Founded by Nilotpal Baruah and Anjanjyoti Phukan, Rocery is another fast-growing vendor that is revolutionizing the state’s online meat and fish farm.
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“The industry in Assam is largely unorganized and mainly run by middlemen. Poor hygiene and a disorganized market structure make things difficult for many people… Rocery is a concept as a one-stop shop for all meat and fish products,” says Baruah.
Co-founder of Fooppers, Hirak Jyoti Das, says that his project was originally a discount coupon platform for restaurants, but the initiative did not succeed. Later in 2020, Hirak, along with his childhood friend Rahul Anand Kalita, moved Fooppers to an online home delivery service.
“We do not store raw products. We source raw meat from GMC (Guwahati Municipal Corporation) certified suppliers. In addition to meat, we also supply seafood, and we have a ready-to-eat section where you can find things like french fries, frozen peas, frozen corn, chicken salami, chicken nuggets, chicken popcorn, etc.,” says Das.
For seafood, Fooppers has seafood vendors in Guwahati. The company’s suppliers source these products from Odisha, Mumbai and Andhra Pradesh as well. Its products are FSSAI certified and the start-up is an authorized dealer of Assam Livestock and Poultry Corporation.
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Alongside domestic start-up companies, there are grocery and ethnic raw material start-ups founded by young entrepreneurs from Assam in other parts of the country.
Being away from home has never been easy, says Jubismita Goswami, founder of Bangalore-based Axom Haat. “I miss home cooking and local ingredients that Assamese people use in our recipes. We created Axom Haat and started from the Kharkhowa brand known for homemade pickles. Now we have almost 100 different products that we supply to India.
Juhaal was born with the intention of meeting the food needs of the Northeasterners living in Delhi-NCR. Founders Krishnazina Thakur and Olenka Dilip, two friends from Guwahati, started this initiative in 2018.
The new company deals in authentic food products: Lakadong turmeric, Khasi ginger powder, red and black rice cakes, wild black pepper, bora and Joha Saul from Assam, and dried holy rose plum from Manipur, smoked duck and pork. These are just some of the items that are in high demand.
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Although grocery and meat products are in demand, the journey for these entrepreneurs is far from a walk in the park. Moving products from one place to another during the global lockdown has been a huge problem for these entrepreneurs. The relatively new popularity of buying meat and fish online has made it difficult for customers to trust their authenticity.
Axom Haatin Goswami says, “Since we are based in Bangalore and all our products are sourced from remote locations, it is expensive to get the products to Bangalore. We also have the last delivery challenge. Through the CAB/CAA unrest and then Covid-19. Achieving continuous product supply was challenging due to all these factors. After the lockdown, most of our delivery partners increased their delivery speed. The battle is never-ending.”
Manxho’s Saikia adds that being a small business in rural Assam has its own challenges. But Huda has a very different concern. “The highly disorganized sector of the northeastern sector is a big challenge for us. The people working in these fields were also not very educated and mostly consisted of small street vendors. There was no quality control and hygiene control system when things started.”
The bartender says they’ve only gotten word of mouth so far. “The e-commerce market is dominated by discounts and massive advertising, and we don’t have the deep pockets to finance these discount campaigns. So we reach our target customers mainly through paid and organic digital marketing channels and of course word of mouth. We offer nominal discounts to our customers from time to time. We received the necessary guidance and financial support from the North East Agri Technology Entrepreneurs Hub (NEATHUB) Saranya 3.0 Startup Incubation Program. We are currently in advanced incubation of cohort 3.0 of NEST Assam Startup (managed by IIM Calcutta Innovation Park).”
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Manxho’s Saikia adds that being a small business in rural Assam has its own challenges. But Huda has a very different concern. “The highly disorganized sector of the northeastern sector is a big challenge for us. The people working in these fields were also not very educated and mostly consisted of small service providers. There was no quality control and hygiene control system when things started.”
The bartender says they’ve only gotten word of mouth so far. “The e-commerce market is dominated by discounts and massive advertising, and we don’t have the deep pockets to finance these discount campaigns. So we reach our target customers mainly through paid and organic digital marketing channels and of course word of mouth. We offer nominal discounts to our customers from time to time. We received the necessary guidance and financial support from the North East Agri Technology Entrepreneurs Hub (NEATHUB) Saranya 3.0 Startup Incubation Program. We are currently in advanced incubation of cohort 3.0 of NEST Assam Startup (managed by IIM Calcutta Innovation Park).”
One positive index that India’s online grocery business is aiming for is its future prospects. Many of these service providers have served the needs of thousands of people in their area and beyond. The bartender reveals: “We have fulfilled more than 15,000 orders since our establishment.”
Saikia also shares some of her hits. “We started in our home district and within a year we moved to three other districts and also to another state. By opening new stores in cooperation with the owners of other areas, we can also create jobs,” he adds.
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So far, Rocery’s growth has been purely organic. The company serves a select group of customers who are looking for quality products. They currently have more than 1,200 regular customers and there will be more. Similarly, Juhaal de Thakur serves more than 4000 customers in Delhi-NCR without investing in heavy promotion. They reach customers through word of mouth, exhibitions and Facebook.
“We present ready-made meal sets (marinated meats, fish-based products and traditional recipes). We are
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